Murphy’s Law is the idea that anything that can go wrong will go wrong…
Tenants need to know the facts, which are that Transferring to a Housing Association is not risk free.
Housing Associations are taking on increasing amounts of risk by expanding into new business areas to maintain or boost their development numbers.
In 2008 the collapse of a small Housing Association:
The collapse of Ujima housing association is a warning to the entire sector that must be taken extremely seriously by the Government. If more disasters of a similar nature are not to occur, lessons must be learned, and quickly. There is a danger that we will believe that what happened to Ujima is an isolated case, but we cannot be so complacent. When we consider the scale of what happened there, we should be astonished by the national media’s lack of interest in the matter, for example. Ujima is the first housing association ever to have become insolvent and effectively gone into receivership, putting at risk the homes of more than 5,000 families in London, Slough and Reading.
As I write February 2013:
With the Cosmopolitan Housing Group (CHG) looking close to going bust. WHAT could be the outcome?
I have read that the HCA may have too instigate a ‘moratorium’ – a 28-working day stay of execution during which time it will attempt to broker a deal with the ‘secured creditors’ of the social housing business, such as banks, to ensure the social homes can be protected from the insolvency process.
So what on earth has gone wrong at Cosmopolitan and what lessons are there?
As Jim Royle would say – safe as houses my arse
Governance Structures come on the Agenda in March and April, I really look forward to reporting from the Northampton Housing Options Panel
More on the collapse of Ujima housing association
Current situation at Cosmopolitan